I'm Swiss-born, served as a Marine jet attack aviator in the Korean and pre-Vietnam era. I received an MBA from UC Berkeley in 1962, with highest honors. I've held top management positions at GM, BMW, Ford, Chrysler and retired from GM as Vice Chairman in 2010 at age 78. My two successful books are "Guts: The Seven Laws of Business That Made Chrysler The World's Hottest Car Company" (Jonn Wiley+Son, 1998) and, more recently, "Car Guys vs. Bean Counters: The Battle For The Soul Of American Business" (Portfolio Press, 2010) Most current book "Icons and Idiots" (Portfolio Press, 2012). I'm a contributor for Road & Track Magazine along with CNBC, and appear with some frequency on "Larry Kudlow." I serve on numerous startup boards, am a Leigh Bureau professional lecturer and provide consulting services to a number of clients. I tend to have strong opinions which I share with enthusiasm ... some would say "to a fault." My personal motto is "Often wrong, but seldom in doubt." For more information, visit my website, boblutzsez.com.

The Green Jobs Scam

Since when do jobs come in assorted colors? Back when I took university-level economics, jobs were micro-sources of economic activity, consuming some resources in the form of wages and benefits, but, with the help of capital and effort, adding value in the sense that beneficial output exceeded the wage input. But as result of the belief that fossil fuels are bringing on global warming, governments, federal and state, have created a new job category called “green.” This category flies in the face of all accepted economic theory, in that the goal of this employment is not to increase economic efficiency (thereby providing lower costs, higher profitability, an increase in capital which, in turn, permits more investment and still more jobs) but, instead, to DISPLACE energy sources that are cheaper and more readily available.

“Green” job creation, almost always supported by massive government subsidies, does not further economic activity — it is actually harmful. Assigning massive amounts of capital, private or government, to a business or industry with a negative payback is a misallocation of resources, much like a car company spending hundreds of millions on a vehicle that either fails to sell, or sells at less than it costs to produce.

The wind turbine industry, as well as the current generation of solar cells, are prime examples of “new” industries created in the name of “sustainability.” With massive infusions of taxpayer capital, accompanied by mandates that energy companies have to use a certain percentage of the output “or else,” new “green” workers are hired. Their product costs more than the market price of traditional energy sources, so the economic effect is negative. Energy costs are the very core of a nation’s industrial competitiveness. High energy costs have what economists call a “multiplier effect”: they raise the downstream cost of every process in the system until the end product reaches the consumer. They suck wealth out of the system through lower sales, lower margins, reduced returns on investment and slower capital formation, which, in turn, reduces new investment and legitimate job creation. This is not how the private enterprise system is supposed to work. Centrally-directed investment and job creation into activities that produce negative economic value is the stuff of Socialism. As history has proven time and time again, it only works until all the money is gone. That doesn’t sound like “sustainability” to this writer.

Alternative energy sources are laudable, and everyone understands that there will always be an early phase of higher costs that will ease as the technology matures. But a lot of what is currently being foisted on the public will never “mature,” and will remain an ideologically-driven manipulation of an economic system that can ill afford the added cost and inefficiency.

Europe embarked on massive “Green Jobs” schemes years before the U.S. caught the fever. Their economies are a mess. Meanwhile, the U.S. is getting greener and greener, but poorer and poorer. I can’t prove a causal relationship, but the coincidence does make one wonder.

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